Höegh LNG - the FSRU provider

1

3Q 2018Presentation of financial results

29 November 2018

Forward looking statements

2

This presentation contains forward-looking statements which reflects management’s current expectations, estimates and projections about Höegh LNG’s

operations. All statements, other than statements of historical facts, that address activities and events that will, should, could or may occur in the future are

forward-looking statements. Words such as “may,” “could,” “should,” “would,” “expect,” “plan,” “anticipate,” “intend,” “forecast,” “believe,” “estimate,” “predict,”

“propose,” “potential,” “continue” or the negative of these terms and similar expressions are intended to identify such forward-looking statements. These

statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control and

are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements.

You should not place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. Unless legally required, Höegh

LNG undertakes no obligation to update publicly any forward-looking statements whether as a result of new information, future events or otherwise.

Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are: changes in LNG transportation

and regasification market trends; changes in the supply and demand for LNG; changes in trading patterns; changes in applicable maintenance and regulatory

standards; political events affecting production and consumption of LNG and Höegh LNG’s ability to operate and control its vessels; change in the financial

stability of clients of the Company; Höegh LNG’s ability to win upcoming tenders and securing employment for the FSRUs on order; changes in Höegh LNG’s

ability to convert LNG carriers to FSRUs including the cost and time of completing such conversions; changes in Höegh LNG’s ability to complete and deliver

projects awarded; changes to the Company’s cost base; changes in the availability of vessels to purchase; failure by yards to comply with delivery schedules;

changes to vessels’ useful lives; changes in the ability of Höegh LNG to obtain additional financing, including the impact from changes in financial markets;

changes in the ability to achieve commercial success for the projects being developed by the Company; changes in applicable regulations and laws; and

unpredictable or unknown factors herein also could have material adverse effects on forward-looking statements.

Agenda

3

▪ Highlights

▪ Operational update

▪ Market update

▪ Financials

▪ Summary

Highlights for the third quarter of 2018 and subsequent events

4

Highlights

▪ EBITDA of USD 47.9 million

▪ Net profit of USD 6.0 million, including impairment of USD 9.0 million

▪ Dividend of USD 0.025 per share paid in the third quarter of 2018

▪ Secured commitments for the debt financing for Höegh Gannet (FSRU #9) and FSRU #10

Subsequent events

▪ Dividend of USD 0.025 per share declared in the fourth quarter of 2018

▪ Investment in Avenir LNG to develop small-scale LNG market position

▪ Höegh Esperanza commencing FSRU operations in Tianjin, China

▪ Secured commitments for refinancing of Höegh Gallant and Höegh Grace at

improved terms

Agenda

5

▪ Highlights

▪ Operational update

▪ Market update

▪ Financials

▪ Summary

Commercial development

6

FSRU market

▪ Active market with 5 FSRU contract awards so far this year

▪ FSRU activity concentrated in Asian and Middle East markets

▪ Tight LNGC markets positively impacting competitive situation for FSRUs

Commercial

development

▪ Achieved exclusivity on 2 FSRU projects, and in final selection round for another 2

▪ Höegh Esperanza commencing regasification operations in Tianjin, China

▪ Highly complementary investment in Avenir LNG for small-scale LNG position

Outlook

▪ Solid underlying demand for FSRUs amid growing supply of LNG

▪ Höegh LNG in strong competitive position with newbuilding FSRU fleet to secure attractive

long-term FSRU contracts

Höegh Esperanza, Tianjin, China

First mover advantage in the Chinese market under a 3+1 year contract with CNOOC

7

▪ Höegh LNG has in place a 3+1 year

FSRU/LNGC contract with CNOOC

for the FSRU Höegh Esperanza

Serving as a regasification terminal

in Tianjin for a minimum period each

year

Balance of the year in LNGC and/or

FSRU mode

▪ FSRUs filling acute import

infrastructure shortage amid rapid

LNG demand growth

▪ Höegh LNG in a favourable position

by operating the sole FSRU in the

Chinese market

A new market for FSRU growth: Investment in small-scale and Avenir LNG

8

▪ Strong synergies since small-scale LNG projects

depend on storage and reloading capabilities

provided by FSRUs

▪ Avenir LNG: Supplying LNG to new markets using

small-scale LNG carriers and terminals

Main driver: Oil-to-gas switch

Aggregating demand across regions

Capturing margins across the LNG value chain

▪ Small-scale LNG to stimulate FSRU demand by

expanding the number of viable markets for full-

scale newbuilding FSRUs

▪ Avenir LNG listed at N-OTC in Oslo on

15 November 2018, Höegh LNG with 22.5% stake

5.7

2 7.7

1.2 8.9

0.9 9.8

12

17.3

0

2

4

6

8

10

12

14

16

18

20

LNG priceFOB

Handling Deliveredbunkering

Handling Deliveredpowerplant

Handling Deliveredtruck

Rotterdam380 CST

RotterdamMGO

US

D p

er

MM

Btu

Illustrative economics, small scale LNG

Δ USD 4.3-9.6

Δ USD 7.5

Δ USD 3.1

1

1) Henry Hub spot price of USD 2.75 per MMBtu + 15% + USD per MMBtu in tolling fee

2) Shipping, FSU and small-scale expenses; assuming large LNG carrier to Europe with 10% economics on charter,

fully utilised FSU with 10% to FSU owner

3) Small-scale cash breakeven including operating costs and 10% economics on capex

2,3 3

Cost of competing

oil products

Höegh LNG’s FSRUs already providing multiple small-scale LNG services

9

LNG bunkering

LNG truck distribution

ISO container distribution

Small-scale LNG distribution

Pipe-to-shore regasified LNG

from FSRU

Base service

Future

Lithuania China

Future

Built EBITDA Charterer

USDm/yr

Höegh LNG Holdings

Arctic Princess* 2006 19** Equinor

Arctic Lady* 2006 19** Total

Independence 2014 47 KN

Höegh Giant 2017 Naturgy / LT contract

Höegh Esperanza 2018 CNOOC / LT contract

Höegh Gannet 2018 Naturgy / LT contract

FSRU#10 2019 Spot / LT contract

Höegh LNG Partners

Neptune 2009 33** Total

GDF Suez Cape Ann 2010 33** Total

PGN FSRU Lampung 2014 40 PGN

Höegh Gallant 2014 38 Egas / Gunvor

Höegh Grace 2016 42 SPEC

Long-term contract Extension option Under constructionFSRU and/or LNGC

intermediate charter

2036 20382024 2026 2028 2030 2032 2033 2035 203720342027 2029 20312020 20222019 2021 2023 2025

Modern fleet marketed in growing long-term FSRU market

10

* LNG carriers

** 100% basis, units are jointly owned

Long-term business under developmentDelivery December 2018

Delivery Q2 2019

Agenda

11

▪ Highlights

▪ Operational update

▪ Market update

▪ Financials

▪ Summary

Solid momentum in LNG trade, driven most prominently by growing Asian import demand

12

▪ Total trade of 236 million

tonnes in 9M 2018, up 7.1%

from 9M 2017

▪ Combination of new supply of

LNG and robust demand in

Asia driving LNG trade growth

▪ Full-year trade forecasted to

be around 320 million tonnes,

up 7.7% from 2017

Source: Waterborne LNG / IHS Markit

15

17

19

21

23

25

27

29

31

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

mill

ion t

onnes

LNG trade by month, global

2013 2014 2015 2016 2017 2018

Additional regasification capacity required to meet growing Chinese LNG import demand

13

▪ Imports from time-to-time exceed

available regasification capacity,

particularly in northern China

▪ During those periods, LNG is

loaded as liquid onto trucks and

distributed to the market

▪ One of Höegh LNG’s FSRUs

would add around USD 0.5 million

tonnes of monthly regasification

capacity

0

1

2

3

4

5

6

2016 2017 2018

mill

ion t

onnes p

er

month

Chinese LNG imports and regasification capacity

Total imports Total nameplate capacity

November 2018e

Source: Waterborne LNG / IHS Markit

89

7

2

2

1

1

1

0

2

4

6

8

10

12

Höegh LNG Excelerate Golar LNG BW Gas Other Single-purpose

Un

its

FSRU fleet and orderbook1 by owner

Existing Newbuilding LNGC-to-FSRU conversion

29 FSRUs currently on the water – 13 new units scheduled to deliver through 2022

▪ Of 13 newbuilding orders, 5 are

being built by developers for

their own specific projects, and

thus are not offered in the

market

▪ Of the remaining 8 orders, 6

appear uncommitted with

delivery through 2022

14

OLTMOL

Gazprom

Kol / Kal

SWAN

Java-1

Exmar

Source: Höegh LNG1 Orderbook defined as confirmed orders, excluding LOIs, options and conversions not firmed up

Maran

Dynagas

Dynagas

Botas

Large number of market opportunities backed by diverse drivers of demand

Region Existing In development Proposed

N America 1 2 +

S America 6 2 3 +

Europe 4 2 4 +

MENA 5 5 +

Sub-Sahara

Africa4 +

South Asia 4 3 5 +

Asia/Oceania 3 4 6 +

Sum 22 12 30 +

15

Enabler

Security of supply

Seasonal demand

Back-up for hydro

Balance of trade

New gas-fired generation

Demand drivers

Increasing

supply of

attractively

priced LNG

Transportation

Replacement for coal and oil

Existing and potential FSRU contracts

Source: IHS Markit

Robust LNG carrier markets have several positive implications for the FSRU market

▪ Fall-back option well in the

money

FSRUs with full trading

capabilities earn the same rates

as purpose-built LNGCs

Höegh LNG has fixed its non-

FSRU trading capacity at long-

term rate levels

▪ Booming spot LNGC rates

have:

Reduced competition in the

FSRU market as LNGC owners

take advantage of strong rates

Put effective stop to speculative

LNGC-to-FSRU conversions

16

0

20

40

60

80

100

120

140

160

180

200

2011 2012 2013 2014 2015 2016 2017 2018 2019

'000 U

SD

per

day

LNGC charter rates

Steam spot DFDE spot Long-term

Data source: IHS Markit

Agenda

17

▪ Highlights

▪ Operational update

▪ Market update

▪ Financials

▪ Summary

Financial highlights for the quarter ended 30 September 2018

18

USD million 3Q 2018 2Q 2018

Total income 82.3 75.8

Charterhire and other expenses -8.9 -10.5

Operating expenses -14.1 -14.0

Administrative and BD expenses -11.3 -11.0

EBITDA 47.9 40.3

Depreciation -13.5 -13.6

Impairment -9.0 0.0

EBIT 25.3 26.7

Net interest expense -15.1 -15.7

Net other f inancials -1.3 -1.7

Profit before taxes 8.9 9.3

Corporate income tax -3.0 -1.4

Profit for the period 6.0 7.8

7.8

5.5

2.1

1.0 1.5

9.0

6.0

0

2

4

6

8

10

12

14

16

18

Q2 2018 EBITDA ex.reimb.

Reimburse-ment

Net finance Net other Impairment Q3 2018

US

D m

illio

n

Net profit variation, Q2 to Q3 2018

Balance sheet

19

▪ Redemption of marketable

securities portfolio

▪ Interest bearing debt reduced due

to scheduled amortization

▪ 38% adjusted equity ratio

USD million 30-Sep-18 30-Jun-18 31-Dec-17

Investments in FSRUs 1,658 1,671 1,386

Investments in new buildings 172 167 233

Other 95 102 92

Long-term restricted cash 13 13 14

Marketable securities 0 50 74

Cash and short-term restricted cash 201 145 160

Total assets 2,139 2,147 1,959

Equity attributable to the parent 510 507 479

Non-controlling interests 269 253 226

Total equity 779 760 705

Interest bearing debt 1,297 1,317 1,156

Other 63 69 98

Total equity and liabilities 2,139 2,147 1,959

NIBD 1,082 1,109 908

Adjusted equity 792 782 763

Adjusted equity ratio 38% 37% 39%

Höegh LNG is fully financed at attractive terms

20

Höegh Esperanza Höegh Gannet FSRU #10

Delivery April 2018 December 2018 Q2 2019

StructureExport credit and

commercial debt

Export credit and

commercial debtSale and leaseback

Leverage (% of

delivered cost)65-75% 65% 70-80%

Amortisation

profile16-18 years 16 years 20 years

Tenor 12 / 5 years 12 / 5 years 12 years

Fixed interest rate ~4% ~5% ~6%1

▪ With commitments received for

the financing of FSRU #10,

Höegh LNG is fully equity and

debt financed

▪ Diverse lending group

consisting of leading

international banks and credit

institutions

(1) Not yet swapped

0

50

100

150

200

250

300

350

400

450

Q4 2018 2019 2020 2021 2022 2023 2024 2025

US

D m

illio

n

Debt repayment schedule

Amortisation Amortisation of refinanced debt Balloons Bonds

Refinancing of Höegh Grace and Höegh Gallant well ahead of maturity and at improved terms

211) All balloons assumed refinanced in full, extending current amortisation profiles

▪ Refinancing of Höegh Gallant and Höegh Grace

totalling USD 385 million

Refinancing of outstanding amount of USD 320 million

Availability of USD 65 million in RCF

▪ Tenor stretched from 5 to 7 years, lower interest

rate margin

▪ Fixed interest expected to be approximately 5.3%

▪ Refinancing well ahead of Q4 2019 / Q2 2020

maturities

1

Independence

PGN FSRU

Lampung

HLNG02

HLNG03

Höegh

GiantHöegh

Esperanza

Höegh

Gannet

Höegh

Gallant

Höegh

Grace

Outstanding capital expenditures fully matched by available liquidity

22

Available liquidity at 30 Sept. 2018 USDm

Cash, net of HMLP 168

Revolving credit facility 39

Debt for Höegh Gannet 177

Debt for FSRU #10 178

Available liquidity 562

Increased leverage on Höegh Giant /

Höegh Esperanza / FSRU #1087

Targeted available liquidity 562-649

Outstanding capital expenditures,

30 September~370-390

177 178 - 206

0

50

100

150

200

250

Q4 2018 2019 2020

US

D m

illio

n

Capital expenditures and funding

Höegh Gannet debt FSRU #10 debt Equity

Agenda

23

▪ Highlights

▪ Operational update

▪ Market update

▪ Financials

▪ Summary

Summary

24

Record quarterly performance with EBITDA of 47.9 million and net profit of 6.0 million

Solid market backdrop with expanding LNG demand, especially in Asia

Positive impact from strong LNGC markets

Busy market for FSRUs, in final selection round / secured exclusivity for four FSRU projects

Newbuilding programme fully financed and successful refinancing of Höegh Grace / Höegh Gallant

25

Q&A session

29 November 2018 - 09:00 CET

Call-in details:

Norway +47 2350 0187

United Kingdom +44 (0)330 336 9104

United States +1 323 794 2558

Participant passcode: 040814

Alternatively, click here to be called directly and placed into the event

Webcast:

http://webtv.hegnar.no/presentation.php?webcastId=97451619